This article discusses whether strata funds for Christmas party expenses can be legitimately used when the cost is clearly included and approved in the annual operating budget.
Question: Can the council of owners use the operating budget to pay for a residents’ Christmas sundowner, or should owners self-fund the event?
Each Christmas, our council of owners hosts a residents’ Christmas sundowner for our complex. The strata company pays about $3,000 in food and drink costs from the operating budget. Is this a legitimate expense for the strata company, or should residents be asked to fund the event themselves?
Answer: If this expense is clearly included and approved as part of the annual operating budget at the Annual General Meeting (AGM), then it is legitimate.
In my opinion, if this expense is clearly included and approved as part of the annual operating budget at the Annual General Meeting (AGM), then it is legitimate. Transparency and prior approval are key to compliance under WA strata legislation.
Hosting social events like a Christmas sundowner can deliver significant benefits to the community, including:
- Pride and care in the building – Residents who feel connected are more likely to respect and maintain common property.
- Reduced conflict – Positive relationships between neighbours often lead to fewer disputes.
- Improved dispute resolution – When issues arise, a sense of community makes resolution easier and less adversarial.
- Enhanced wellbeing – Social interaction fosters a supportive environment, improving mental health and overall satisfaction.
- Higher engagement in strata matters – Owners who feel part of a community are more likely to attend meetings and contribute constructively.
- Better security and safety – Residents who know each other tend to look out for one another, reducing risks.
The council of owners have a duty of care and transparency, which is easily achieved in this circumstance if the expense is included in the annual budget and clearly labelled as the Christmas sundowner.
Luke Downie Realmark E: ldownie@realmark.com.au P: 08 9328 0999
This post appears in Strata News #772.
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